Iran economy shows signs of recovery after war downturn

Iran's economy is showing signs of recovery from the sharp downturn caused by the recent war, with economic activity gradually resuming, according to the head of the Iran Chamber of Commerce, Industries, Mines and Agriculture, Samad Hassanzadeh. Speaking at a meeting of the chamber's representatives on Sunday, Hassanzadeh said the latest Purchasing Managers' Index (PMI) reports contained encouraging signs of a relative improvement in economic conditions, as reported by Iranian state broadcaster Press TV.

Hassanzadeh attributed the improvement to efforts by the country's private sector and businesses, as well as a temporary easing in the intensity of economic shocks compared with the preceding months. He also pointed to government efforts to keep economic activity going and engage with other countries, according to Press TV. However, he stressed that sustaining the improvement would require greater international engagement.

Official data from the Iran Chamber also point towards an easing in the severity of the economic downturn, although activity remains in contraction territory. The Iran Chamber's latest PMI report showed that the PMI for the overall economy stood at 45.9 in Khordad (roughly late May to late June), while the industrial-sector PMI was 48.2. Both readings remained below the neutral level of 50, which separates expansion from contraction.